NH Hotel Group rejects merger

NH Hotel Group has declined an unsolicited bid from Barcelo Group after seeking advice from Bank of America Merrill Lynch.

It issued a statement today saying it was the unanimous decision of the Board of Directors to reject the proposed merger with Majorca-based Barcelo.

NH Group added: "The Board is keen to stress that its decision was taken in defence of the Company interest and all of its shareholders.

"The Board also emphasizes that this bid does not condition or impede the analysis of other strategic opportunities in the future, all of which would be evaluated on the basis of the real value they stand to generate for NH Hotel Group's shareholders, within the framework of consolidation trends prevailing in the hotel industry."

The group said the proposed merger would not permit the creation of shareholder value 'over and above that which NH stands to create on a standalone basis'.

"Based on its analysis, the Board does not deem the intrinsic value assigned to NH in the bid presented by Grupo Barcelo, nor the exchange ratio offered, to be sufficient. Neither is the scope of the bid," it added.

NH Hotel Group operates close to 400 hotels in 31 countries across Europe, the Americas and Africa, including top city destinations such as Amsterdam, Barcelona, Berlin, Bogota, Brussels, Buenos Aires, Dusseldorf, Frankfurt, London, Madrid, Mexico City, Milan, Munich, New York, Rome and Vienna.